The material accounting policies adopted by the company in preparation of its standalone financial statements are listed
below. Such accounting policies have been applied consistently to all the years presented in these standalone financial
statements, unless otherwise stated.

a. Basis of preparation

These standalone financial statements (‘financial statements’) are prepared in accordance with Indian Accounting
Standards (Ind AS) and guidelines issued by the Securities and Exchange Board of India (SEBI) under the historical
cost convention on the accrual basis except for the following:

Items Measurement Basis

Defined Benefit Plan Plan assets measured at fair value
Derivative instruments Fair value

The Ind AS are prescribed under Section 133 of the Companies Act 2013 (the Act) read with Rules of the Companies
(Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b. Classification of assets and liabilities as current and noncurrent

All Assets and Liabilities have been classified as Current or Non-Current as per the Company’s normal operating
cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of product &
activities of the Company and their realisation in cash and cash equivalent, the Company has determined its operating
cycle as twelve months for the purpose of Current and Non-Current classification of assets and liabilities.

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rs. in lakhs as per
requirement of schedule III, except per share data and unless otherwise stated.

c. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

d. Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use. The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole-

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on
the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. This
note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

e. Revenue Recognition

The Company earns revenue from sale of leather footwear and other accessories.

Revenue is recognised upon transfer of control of promised goods or services to customers in an amount that
reflects the consideration which the Company expects to receive in exchange for those products or services.

Revenue from sales of goods is recognised on output basis measured by units delivered, number of transactions etc.

Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which
coincides with the performance obligation under the contract with the customer.

Revenue from services is recognized in accordance with the terms of contract when the services are rendered and
the related costs are incurred.

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, price
concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes
collected from customers.

Revenue from related party is recognised based on transaction price which is at arm’s length.

Use of significant judgments in revenue recognition :-

The Company’s contracts with customers could include promises to transfer multiple products and services to a
customer. The Company assesses the products / services promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligation involves judgments to determine the
deliverables and the ability of the customer to benefit independently from such deliverables.

Judgment is also required to determine the transaction price for the contract. The transaction price could be either a fixed
amount of customer consideration or variable consideration with elements such as volume discounts, price concessions
and incentives. No significant element of financing is deemed present as the sales are made with a general credit term of
less than 30 days, which is consistent with market practice. Any consideration payable to the customer is adjusted to the
transaction price, unless it is a payment for a distinct product or service from the customer. The estimated amount of
variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant
reversal in the amount of cumulative revenue recognized will not occur and is reassessed at the end of each reporting
period. The Company allocates the elements of variable considerations to all the performance obligations of the contract
unless there is observable evidence that they pertain to one or more distinct performance obligations.

Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets
are classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive
cash, and only passage of time is required, as per contractual terms.

Unearned and deferred revenue (“contract liability”) is recognised when there is billings in excess of revenues.

f. Exceptional Items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide
further understanding of the financial performance of the Company. These are material items of income or expense
that have to be shown separately due to the significance of their nature or amount.

g. Intangible Assets

Intangible assets acquired separately are recorded at cost at the time of initial recognition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.
Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever
there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method
for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are
considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting
estimates. The amortisation expense on intangible assets is recognised in the standalone statement of profit and loss.

The Company amortises computer software over the period of five years.

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business
combination that are not individually identified and separately recognized. Goodwill is initially measured at cost,
being the excess of the consideration transferred over the net identifiable assets acquired and liabilities assumed,
measured in accordance with Ind AS 103, ‘Business Combinations’.

Goodwill is considered to have indefinite useful life and hence is not subject to amortization but tested for impairment
at least annually. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets
recognised as at April 1, 2015, measured as per the previous GAAP, and use that carrying value as the deemed
cost of such intangible assets.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the standalone statement of profit or
loss when the asset is derecognised.

The Company capitalises intangible asset under development for a project in accordance with the accounting
policy. Initial capitalisation of costs is based on management’s judgement that technological and economic feasibility
is confirmed, usually when a product development project has reached a defined milestone according to an established
project management model.

h. Property, plant and Equipment

Freehold land is carried at historical cost.

Capital Work in Progress, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such Cost includes the cost of replacing part of the plant and equipment and borrowing
costs for long term construction projects if the recognition criteria are met. When significant parts of plant and
equipment are required to be replaced at intervals, the company depreciates them separately based on their specific
useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the
plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs
are recognized in profit or loss as incurred. No decommissioning liabilities are expected to be incurred on the assets
of plant and equipment. Depreciation is calculated on a straight line basis over the estimated useful lives of the
assets. Leasehold improvements are amortised over the period of lease or estimated useful life, whichever is lower.

An item of Property, plant and equipment and any significant part initially recognized is derecognized upon disposal
or when no future economic benefits are expected from its use or disposal. Any Gain or Loss arising on derecognition
of the asset (calculated as the difference between the net disposal proceeds and carrying amount of the asset) is
included in the income statement when the asset is derecognized.

Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make the sale.

Inventories are valued on FIFO basis. Variation, if any, between books and physical stocks detected on physical
verification, obsolete & slow moving stocks are adjusted in accounts as found appropriate.

j Financial instruments

1. Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition,
except for trade receivables which are initially measured at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through
profit or loss are added to the fair value on initial recognition. Regular way purchase and sale of financial
assets are accounted for at trade date.

. 2. Subsequent measurement

a. Non-derivative financial instruments

i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. The Company has made an irrevocable election for its investments which are classified
as equity instruments to present the subsequent changes in fair value in other comprehensive income
based on its business model. Further, in cases where the Company has made an irrevocable election
based on its business model, for its investments which are classified as equity instruments, the
subsequent changes in fair value are recognized in other comprehensive income.

iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss.

iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except
for contingent consideration recognized in a business combination which is subsequently measured at
fair value through profit and loss. For trade and other payables maturing within one year from the Balance
Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

v) Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

b. Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and option contracts
to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for
these contracts is generally a bank.

Financial assets or financial liabilities, at fair value through profit or loss

This category has derivative financial assets or liabilities which are not designated as hedges. Although
the company believes that these derivatives constitute hedges from an economic perspective, they may
not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not
designated a hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial
asset or financial liability, at fair value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs
are recognized in net profit in the Statement of Profit and Loss when incurred. Subsequent to initial recognition,
these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses
are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities
if they are either held for trading or are expected to be realized within 12 months after the balance sheet date.

3. De-recognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for derecognition under IndAS 109. A
financial liability (or a part of a financial liability) is derecognized from the Company’s Balance Sheet when the
obligation specified in the contract is discharged or cancelled or expires.

Impairment of Assets

a. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant
increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount
of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the
amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

b. Non-financial assets
Property, plant and equipment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit
and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated
recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there
has been a change in the estimates used to determine the recoverable amount. The carrying amount of
the asset is increased to its revised recoverable amount, provided that this amount does not exceed the
carrying amount that would have been determined (net of any accumulated amortization or depreciation)
had no impairment loss been recognized for the asset in prior years.

k. Income Taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in
the statement of profit and loss except to the extent that it relates to items recognized directly in equity, in which
case it is recognized in other comprehensive income.

Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the
tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet
date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred
income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the
substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.
Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is
expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The company
offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
The income tax provision for the interim period is made based on the best estimate of the annual average tax rate
expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee
share options in excess of compensation charged to income are credited to share premium.